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Why Dynamic First-Party Integration Is So Important For Paid Marketing
As privacy and tracking become an increasingly larger issue within the Digital Marketing Sector. The need for higher quality data has never been more crucial to achieve those high revenues and ROAS goals most businesses are looking to achieve. Users are now more conscious of privacy and how their data is stored, and platforms are beginning to make major changes to accommodate this recent shift in the privacy sphere.
This has become more evident, with major paid channels such as Facebook and Google being heavily impacted recently, furthering the need to dynamically integrate high-quality first-party data within paid channels as businesses and marketers prepare for the drop in audience tracking and accurate event measurement.
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Facebook’s iOS 14 Update & It’s Impact
The recent impacts the iOS 14 updates had on Facebook, limiting the channel’s ability to effectively receive and process conversion events and track audiences on the channel, resulted in strong limitations in data tracking and audience collection in both app and web-based conversion events. This impacted marketers heavily and saw results plummet across the platform. This led to “band-aid” fixes being introduced by Facebook, with Conversions API and Aggregated Events Management being introduced. Although these additions were assisted on a basic level, they were not the golden ticket fix most PPC experts were after.
Google’s Distancing From Third-Party Cookies
This coincides with Google’s recent announcement to move away from third-party cookies within the next two years, impacting how businesses collected user-generated data previously and depriving information such as habits, demographic data, and preferences across the platform. They’re now shifting their focus to the new Google Privacy Sandbox, a platform that promises privacy while providing businesses with the tools to carry out measurement and tracking.
It will utilize specific APIs controlled by Google to collect customer data. The Trust Token API lets users know the difference between users and bots, and Aggregated Reporting API allows performance-related tracking. Conversions measurements will allow you to figure out if users have converted, while Federated Learning of Cohorts, a type of web tracking, groups users by their browsing habits. Lastly, Retargeting allows users to serve ads to people based on interest groups.
Dynamic First-Party Integration
For most businesses, the loss of third-party data collection has been hailed as the “end of digital advertising” as we know it, with no way to effectively store user session habits and the severely limited ability of businesses to retarget those high-value audiences. The most effective method to combat these big changes, and learn to navigate a digital space that is privacy driven, is with dynamic first-party integration.
[Google] is now shifting their focus to the new Google Privacy Sandbox, a platform that promises privacy while providing businesses with the tools to carry out measurement and tracking.
First-party data is data that originates straight from your audience and customer data sources and is considered the most valuable source for audience data. First-party data is the most accurate and relevant data source and allows advertisers to predict future patterns such as audience purchase behavior. This allows businesses and advertisers to gain audiences’ insights which can be used to create personalized content for advertisers, such as ad copy personalization or product/category targeting for specific users.
Through the utilization of third-party tools such as CRMs and other more complex programs, we are now able to dynamically insert this data within paid platforms. This allows us to focus on the best data and create high-value audience lists to target throughout paid marketing initiatives.
With this integration process, we can phase out the “old school” manual customer upload we had previously done and instead work on dynamic first-party audience lists that are updated with the latest enriched data that also provides us with a holistic view of our customers.
Final Thoughts
As we learn from the events of Facebook and move toward Google’s cookie-less free world, now is the time to start developing a first-party data strategy. Collect, analyze, utilize, and not only mitigate the effects of the loss of third-party data but improve your results across the board moving forward.
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